Fixed Rate coming to an end

kevrod79

Dear all,

My 2 year fixed rate is coming to an end at the end of this month. Currently paying 6.29% on a repayment mortgage with the Bank of Scotland. My wife will soon be on SMP as her boss does not pay any sort of enhanced maternity which is going to cut the monthly income by about 1K. Outstanding Mortgage is currently 74K on a house worth 140K, and monthly payment on 6.29% is £529.

Bank of Scotland offering 4.39% fixed for 2 years with no fee and 4.89% fixed for 3 years with no fee. They are also offering 3.99% fixed for 2 years with a 1K fee. I would consider moving providers. Can anyone suggest the best possible option from the above. If I took the one with the fee then it would be added to the outstanding amount.

Regards,

Kevin

Wutang_2

Depends what you earn Kev

kevrod79

Ooops, forgot about that. About 38K

Wife about 23.5K normally.

dimbo61

Well Kev with a baby on the way and your wife off work for the next 12/18 months I would go for the 3 year deal at 4.89% and ask your lender to keep your payments static at the same amount you are paying now ( that way you overpay a little each month)
She works for a crap boss so may not want to return to work.
GOOD LUCK TO YOUR AND YOUR FAMILY!

Let_Us_See

LTV and affordability (even utilising only your income) should not be a problem with lenders - assuming you have no other large existing financial commitments?

Although there are some extremely low base trackers around at the moment, a fixed rate is always an attraction for the obvious reason. Those fixed rates mentioned are not all that competitive, and suggest you find an independent whole of market adviser for guidance (and a lower fixed rate).